This year, many taxpayers have raised concerns about delays in receiving income tax refunds. To address this, CBDT Chairman Mr. Ravi Agrawal shared detailed clarifications on the current situation, the reasons for slow processing, and what taxpayers should expect in the coming months.
The explanation below captures the latest updates in a simple and practical manner.
🔍 PART 1: Key Points Announced by CBDT
The CBDT has stated that authentic and verified refund claims are expected to be cleared by December 2025. This means most routine refund cases are on track.
At the same time, the department is thoroughly reviewing refund claims that show:
- unusually high amounts
- inconsistencies with reported income
- deduction mismatches
- doubtful or unsupported entries
Due to these checks, many taxpayers have been instructed to revise their returns or correct discrepancies.
Meanwhile, small-value refunds continue to be processed without significant delays, and several taxpayers have already received them.
🧮 PART 2: Will Interest Be Paid on the Delay?
Taxpayers often worry about losing interest when refunds get delayed.
As per Section 244A, the Income Tax Department must pay 0.5% interest per month on delayed refunds — but only if the delay is caused by the department.
No interest will be paid if the delay is due to:
- filing the return after the deadline
- incorrect details submitted by the taxpayer
- unverified or mismatched information
- questionable deduction claims
- pending clarifications or responses
In short, interest applies only when the department is responsible for the delay—not the taxpayer.
🗂️ PART 3: Additional Steps Being Taken by CBDT
The CBDT Chairman also highlighted ongoing improvements within the department:
- Appeals cleared this year are 40% higher than last year.
- Efforts are being made to smoothen refund processing and reduce bottlenecks.
These steps indicate that the system is being strengthened to make future refunds faster and more consistent.
🧠PART 4: What You Should Do Immediately
If your refund is still overdue, make sure you follow these essential steps:
✔️ 1. Monitor Your Email Inbox
Important updates often reach taxpayers via email, such as:
- confirmation that refund has been credited
- requests to revise or verify details in the return
- intimation under Section 143(1)
- queries raised through e-proceedings
Many taxpayers miss these emails, which can directly delay their refunds.
✔️ 2. Check Your Return Status on the Portal
Steps to follow:
Login → e-File → Income Tax Returns → View Filed Returns
You may see one of the following statuses:
- e-Verified
- Under Processing
- Processed
- Refund Determined
- Refund Credited
- Refund Failed
This shows exactly where your return stands.
✔️ 3. View Detailed Refund Status
If “Refund Determined” or “Refund Credited” appears, you can see more details under:
Services → Know Your Refund Status
You may find:
- confirmation of refund credit date
- reasons for failed credits
- adjustments against old tax demands
✔️ 4. Check Worklist & Notices
Go to:
- Pending Actions → Worklist, or
- e-Proceedings section
See if any notice, clarification request, or response requirement is pending.
Responding promptly helps speed up processing.
✔️ 5. Should a Grievance Be Filed?
You may file a grievance if needed, but CBDT has advised waiting until end of December because most refunds are expected to clear by then.
File a grievance only if:
- your case is not under scrutiny
- no pending action exists on your account
- the refund is still delayed beyond the expected period
âś… Conclusion
The delays in refunds for FY 2024-25 are mainly due to deeper verification, increased compliance checks, and stricter review of high-value or unusual claims. Although this has slowed the process temporarily, it is intended to make the refund system more accurate and reliable.
Taxpayers should keep monitoring their emails, track their return status, and respond quickly to any notices. With most genuine refunds expected to be processed soon, staying proactive and patient is the best approach for now.
If you have any further questions or need assistance, feel free to reach out to us at admin@ushmaassociates.com or info@nricaservices.com, or contact us via call/WhatsApp at +91 9910075924.
Stay Updated, Stay Compliant!
Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.